NHPC's stake in Chenab Valley JV dips below 51% as JKSPDCL infuses fresh equity

New Delhi: State-run NHPC Limited has notified the stock exchanges on Monday that its shareholding and voting rights in Chenab Valley Power Projects Limited (CVPPL) have declined from 58.16 percent to 50.86 percent. The regulatory filing attributed the change to "receipt of additional equity contribution" from M/s Jammu and Kashmir State Power Development Corporation Limited (JKSPDCL) — the J&K government's power arm and CVPPL's other promoter.

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What CVPPL does

CVPPL is a joint venture of NHPC Limited and JKSPDC tasked with executing three hydroelectric projects — Pakal Dul (1,000 MW), Kiru (624 MW), and Kwar (540 MW) — with an aggregate installed capacity of 2,164 MW on the Chenab river basin in Kishtwar district of Jammu & Kashmir. The projects are being developed on a Build, Own, Operate and Maintain (BOOM) basis and are designated projects of national importance under India's broader Indus Basin hydroelectric development push.

Construction is well underway. The flagship Pakal Dul project, initiated in 2018 on the Marusudar river (a Chenab tributary), was approximately 66 percent complete as of mid-2025, with commissioning targeted for 2026.

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What the stake change means

NHPC retains majority control of CVPPL, but only just. The dilution — of roughly 7.3 percentage points — is the result of JKSPDCL exercising its right to contribute additional equity, increasing its own skin in the game as projects near completion and capital requirements mount. For investors, the headline figure to watch is whether NHPC's stake holds above 50 percent through subsequent tranches of project financing as any further dilution would have governance implications for the listed entity's consolidation of CVPPL.

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